0503 GMT - "AI presents an interesting challenge for the Federal Reserve because it could be inflationary in the near term and disinflationary over the longer run," TruStage chief economist Steve Rick says in a note. The enormous investment in data centers, chips, power and skilled labor is creating significant demand today, which could add to price pressures in parts of the economy, he says. "But if those investments translate into stronger productivity growth, AI could ultimately allow the economy to grow faster without generating the same degree of inflation," Rick says.
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